ElectroCore, a company specialising in bioelectronic medicine and wellness, has reached an agreement to acquire NeuroMetrix. The deal is expected to strengthen ElectroCore’s earnings and broaden its range of nerve stimulation products, particularly with the inclusion of NeuroMetrix’s Quell platform.
Quell, a wearable neuromodulator, is designed to help alleviate symptoms of fibromyalgia, a chronic condition that causes widespread pain. With this acquisition, ElectroCore aims to enhance its portfolio and tap into new opportunities in the growing wellness and pain management sectors.
However, the DPNCheck platform, which NeuroMetrix currently offers as a rapid point-of-care test for peripheral neuropathies, will not be part of the sale. Instead, NeuroMetrix plans to divest DPNCheck separately.
While the exact terms of the deal are yet to be finalised, ElectroCore will purchase NeuroMetrix shares based on the company’s net cash balance at the time of closing, after accounting for certain management compensation, severance payments, transaction costs, and other liabilities. The agreement will also include contingent value rights tied to any future net proceeds from the sale of DPNCheck, should it happen before the deal is finalised, as well as royalties related to Quell’s sales.
Following the announcement, shares of NeuroMetrix surged by 9.8%, reaching $4.14 after hours on Tuesday, while ElectroCore’s stock rose 5.5% to $14.70.
Earlier this year, NeuroMetrix had announced plans to explore strategic options, noting in February that there were “attractive opportunities for both vertical and horizontal growth” for its Quell technology. The company also indicated it was reassessing its DPNCheck business in response to changes in Medicare Advantage risk adjustments implemented by CMS the previous year.